Multi Producer Business Model Technical Questions

[chicagotom2345]

EDIT: I changed the content to focus on my questions as the personal info originally included was distracting responders.

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I'm trying to learn how independent multi-agent life+health insurance agencies work where the agency does all the marketing and the agents are employees doing customer service work (including filling out and submitting apps).

1. Can an agency be paid the commissions generated by licensed employee producers directly while compensating those producers with salary? Is this common at in-bound call center agencies?

2. Do agencies that hire employee agents have those agents produce as the agency? (In other words is the licensed corporation that is the agency the producer as far as the insurance co and customer go?) And if so, do the individual employees still need to be appointed by the insurance company or is it enough for the corp entity that is the agency to be appointed?

3. Do general agents take on whole agencies or just individuals? I ask because I wonder if the agency is not a general agent if it is full of producers. But then again the agency is in the retail business while the general agent is in the wholesale business.

4. Are there E&O policies that cover whole agencies or is E&O mostly on an individual basis? Can it be done either way or does the producer of record (the corp itself) have to be directly covered?

Thanks.

 

[Norwayguy]

1 Yes you can have your producers assign thier commissions to the agency (assuming L&H).
1a. Yes
1b. Yes
1c. Yes

Sorry Im on my phone and didn't want to quote your novel can't remember all your questions, which begs the question as to why do you think having never sold insurance that you can build this effective online insurance business?

 

[Bob Klee]

Easy as 1-2-3..

Lots of people are doing this with Health and P&C. Either state wide, regional or in a few cases, nationwide.

You better have a BIG pocket book, especially since you have no experience selling insurance. You will burn through a lot of cash trying to figure out systems, policy/procedure issues. But it can be done successfully as I see it being done already.

Best of luck. Get your feet wet selling or take on a partner or two & you put in $$ & business expertise.

 

[chicagotom2345]

Sorry Im on my phone and didn't want to quote your novel can't remember all your questions

My original post was way too long winded and full of tangents. I updated it to be to the point and direct.